Fairfax, Loudoun County Virginia -Residential Real Estate Market Blog

How is the Spring 2012 Housing Market outlook for Northern Virginia Area-Fairfax/Loudoun & Prince William County

Spring of 2010 was filled with home buyers in the market wanting to take advantage of the $8000 tax credit. Spring of 2011 had all the positive data that influenced Northern Virginia real estate market. So what is in for the real estate market in Northern Virginia for Spring 2012?

From the New Construction Perspective: Builders in the surrounding counties including Fairfax, Loudoun & Prince William have raised their base price, incentives/credits have reduced and lot premiums are back.  We have also seen an increase in number of builders and communities opened up since 2010 which were on hold for a pretty long time. Speaking to most of the builders sales rep they are selling ahead of their scheduled sales forecast.  Over all they are very positive about the coming up spring market.

From the Resale Market Perspective: We still facing the same issue we had last year that is low inventory. I have buyers waiting on the homes in subdivisions/area to be on the market so they can submit an offer and purchase a home. This has caused in some cases multiple offers/ bidding war situation. So if you are a seller and thinking about selling your home my advice is you may want to take advantage of the current low inventory market. In winter cold months though we have smaller pool of buyers but they are serious buyer house hunting. In order to create bang in the market for your home do your homework that is de-clutter, stage your home and price it right.

From the Buyer's Perspective: While I personally the buyers are in same mind set that they were couple years back. Some are more prepared to take advantage of the market and others are on the fence about what is unknown in the near future of the market. Fortunately Northern Virginia's low unemployment (4.2%) has attracted tremendous relocation opportunity, increase in consumer confidence especially for home owner who are considering moving up into a large home, buy an investment property and definitely attract lot first time home buyer since rentals are expensive in our area. If you don't want to be caught up in the spring market start working with your Realtor® now.

From the Mortgage/Lender Perspective:  We still keep hearing "Interest are historically at lowest rate". Financial guidelines are getting restrict and more and more regulations are getting in place. Banks have implemented new restriction that requires certain the credit scores which will determine your interest rate and/or down payment requirement. We had a fluctuation of FHA loan amount limit we swing from $625K back to $729K. On the positive note, few lenders had introduce new in house incentive programs for example with Wells Fargo you can purchase a home with 2% down payment. FHA (3.5% down payment) is still the strongest mortgage type loan for most of the primary resident buyers. 203K Loan has attracted the purchase of distress homes. 80/10/10 loans are back with some lenders and No PMI programs are also an option. Speak to your lender to understand your financial qualification.

My Perspective as a Realtor® : In the current real estate market housing is like a half filled glass of water. As I say to my buyers and sellers we are going to have a good percentage of pessimist and optimist house hunter in the market just like any other market place. Depending on what is the purpose/goal of your purchase, housing market can be great for a long term investor or a Northern Virginia home owner. If you are ready to put your roots down, spread your eggs in different investment stream and/or enjoy the pride of home ownership, "HOME" is right for you. Even if the market slides with the uncertainty of the foreclosure or short sale or government spending or who get's elected in a long run the rewards may pay off. Housing was never a short term investment.

For home owners who are under water you have more options than four or five years ago. With programs like Home Affordable Modification Program (HAMP), Home Affordable Foreclosure Alternatives (HAFA) and Short Sale you can avoid foreclosure retains on your credit history. Many home owners who lost their homes to short sale or HAFA may be eligible to purchase a home as early as within three years.

January and February typically kicks off with a slow start due to many facts like winter weather and middle of the school year. I am not here to convenience you whether you should buy or not. But knowing the facts will help you decide whether this market is for you or not. Here are few of my related blogs you can review to help you decide if you are ready to become a  home owner.

Jan -2012 Northern Virginia Real Estate Market report

Historic Data of Northern Virginia Real Estate Market

If you are relocating or buying or selling team up with a Local Realtor Ritu Desai at Samson Properties, who knows the market and the Northern Virginia area!